Make The World
More Sustainable[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

November 27, 2019
IssuerIchigo Office REIT Investment Corporation (“Ichigo Office,” 8975)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Yoshihiro Takatsuka, Executive Director
www.ichigo-office.co.jp/english
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Hiroshi Iwai, President
Inquiries: Shinichi Fukasawa, Head of Ichigo OfficeTel: +81-3-3502-4891

New Loans and Interest Rate Swaps
Ichigo Office decided today to borrow funds via new loans and enter into interest rate swaps
to lock in the interest rates on the loans.
1. New Loan and Interest Rate Swap Rationale
The new loans will be used to repay two existing loans (total amount of JPY 7,859 million).
Details of the loans to be repaid are in Section 4 below.
The terms of the new loans are both 7.8 years, longer than the loans being repaid, further
strengthening Ichigo Office’s financial position. Ichigo Office is fixing the interest rates on
the two loans via swaps in order to hedge against any future rise in interest rates.
2. Loan Details
No.

12LoanAmountInterest Rate
(JPY million)

Repayment
Date

Repayment
CollateralizedTerms

Loan Date

Lender

Nov 29, 2019

SMBC
Mizuho Bank
Shinsei BankMUFG Bank

2,472

3M JPY TIBOR Sep 25, 2027
(7.8 years)+0.68% (p.a.)1

Lump-sum
repaymentNo

Dec 16, 2019

SMBC
Mizuho Bank
Shinsei BankMUFG Bank
Aozora Bank
Resona Bank

5,384

3M JPY TIBOR Sep 25, 2027
(7.8 years)+0.68% (p.a.)2

Lump-sumrepayment

No1

The swap will fix the interest rate for the loan at 0.84425%. However, the interest rate forthe payment on the first payment date (for the period November 29, 2019 to January 27,2020) will be 0.74727%.

2

Ichigo Office will also execute an interest rate swap on this loan, and will announce
the interest rate for the first period (December 16, 2019 to January 27, 2020) and theswap interest rate once they are determined.
1Notes:
The interest payment date is the 25th of every third month following the loan date. (Thefirst payment date will be January 27, 2020 and the last payment date will be the sameas the principal repayment date.) In the event the interest payment date is not a businessday, payment shall be made on the following business day. If the following business
day falls into the following month, payment shall be made on the previous business day.
The base rate for the loan will be JPY TIBOR as published by the Japanese Bankers
Association (JBA) two business days before each interest payment date. For current JPY
TIBOR rates, please visit the JBA’s website: www.jbatibor.or.jp/english/rate
3. Swap Details
No.

Counterparty

Notional(JPY million)

Contract Date

Termination
Date

Fixed
Interest Rate(Pay)

Floating
Interest Rate(Receive)

1Mizuho Bank

2,472

Nov 29, 2019

Sep 25, 2027
(7.8 years)

0.84425%

3M JPY TIBOR+0.68% (p.a.)

4. Existing Loans Being Repaid
No.

12Loan Date

LenderLoanAmount(JPY million)

Interest Rate

Repayment
Date

Collateralized

Apr 30, 2015

SMBC
Mizuho Bank
Shinsei BankMUFG Bank

2,473

1M JPY TIBOR+0.81% (p.a.)

Nov 30, 20191(4.6 years)

No

Dec 15, 2014

SMBC
Mizuho Bank
Shinsei BankMUFG Bank
Aozora Bank
Resona Bank

5,386

1M JPY TIBOR+0.80% (p.a.)

Dec 16, 2019(5.0 years)

No

1

Because the repayment date is not a business day, the actual repayment date is November
29, 2019.

5. Earnings Outlook
The impact of the new loans and interest rate swaps on Ichigo Office’s April 2020 fiscal
period earnings has already been reflected in the forecast presented in Ichigo Office’s June
14, 2019 release “April 2019 Fiscal Period Earnings.”
6. OtherRisks related to the loans have no material impact on the “Investment Risks” described in
the latest Financial Report submitted on July 29, 2019.

2Loan and Bond Composition after New Loans
Outstanding Loan and Bond Balance(JPY million)
BeforeNew Loans
(A)

After
New Loans(B)1

Change(B) - (A)

Short-term bank loans–––

Long-term bank loans(due within one year)

18,493

10,633-7,859Long-term bank loans

85,562

93,418+7,856

Total bank loans

104,056

104,052

-3

4,400

4,400

–

108,456

108,452-3

Bonds
Total bank loans and bonds
1

The amount reflects a JPY 3 million principal repayment using cash-on-hand.

3Distribution of Loan and Bond Maturities
Before New Loans■ Bank Loans (floating rate)
8,814

9,574

10,233

9,639■ Bank Loans (fixed rate)

9,629

9,633

■ Bonds(JPY million)

9,623
8,846
1,000

7,266

6,346
4,955

4,600

7,859

7,246
2,900

2,793

2,000955
Apr
2020

900
Oct
2020

Apr
2021

Oct
2021

Apr
2022

Oct
2022

Apr
2023

Oct
2023

Apr2024

1,200

1,000

Oct
2027

Apr
2028

1,200600
Oct
2024

Apr2025

Oct2025

Apr2026

Oct2026

Apr2027

Oct2028

Apr2029

Oct2029

Apr2030

After New Loans■ Bank Loans (floating rate)
10,233
9,574

9,639

■ Bank Loans (fixed rate)

9,629 9,633■ Bonds(JPY million)■ New Loans

9,623

9,056

8,846
1,000

7,266

6,346
4,955

4,600

7,856

7,246
2,900

2,793

2,000955

900
Apr
2020

Oct
2020

Apr2021

Oct
2021

Apr
2022

Oct
2022

Apr2023

Oct
2023

Apr
2024

1,200

1,000
1,200

600
Oct
2024

Apr2025

4

Oct2025

Apr2026

Oct2026

Apr2027

Oct2027

Apr2028

Oct2028

Apr
2029

Oct
2029

Apr
2030